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• EIB’s Hoyer: (not Noyer) sees youth unemployment as threat to European project
• Noyer: Commission transaction tax will raise no funds
• BaFin’s Koenig: Treaty change needed for bank resolution mechanism
• USDJPY orders
• Schaeuble: Reforms needed to to make Europe competitive
• ECB’s Noyer says France must push on with labour reforms
• AUDUSD continues to make gains
• USDJPY still heading higher but sellers seen
• Coming up: “Europe-Next Steps” conference in Paris
• UK’s Osborne announces latest round of spending cuts
• European equities open firmer
• Swiss non-farm payrolls Q1: +4.152 mln vs +4.116 mln prev
• EURUSD orders
• Trading Ideas 28 May
• French consumer confidence may: 79 vs 85 exp
• Nikkei closes up 1.2% at 14,311.98
• German import prices april: m/m -1.4% vs -0.5% exp
• Swiss trade balance april: CHF +1.728 bln vs +1.893 bln prev
• US warns the UK over loss of trade deal if they exit EU
• BOJ’s Miyao says it’s vital to keep long and short-term interest rates on a stable path

EIB’s Hoyer: (not Noyer) sees youth unemployment as threat to European project Posted: 28 May 2013 01:54 AM PDT Werner Hoyer is president of the European Investment Bank Credit for companies key to stem joblessness Need to stabilise SME’s to stem unemployment Need for vocational training programs in EU EU institutions need more flexibility Urges comprehensive guarantee for EIB as Quantum leap

Noyer: Commission transaction tax will raise no funds Posted: 28 May 2013 01:47 AM PDT EU transaction tax will penalise borrowers and hinder monetary policy transmission Apologies, seems I’m getting my Hoyer’s and Noyer’s mixed up.

BaFin’s Koenig: Treaty change needed for bank resolution mechanism Posted: 28 May 2013 01:43 AM PDT National structures appropriate for resolution BaFin is the financial regulatory authority for Germany.

USDJPY orders Posted: 28 May 2013 01:41 AM PDT Just off its session highs at 102.24 after the Nikkei-led surge in Asia Sellers 102.50,102.60,102.70,102.80,103.00,103.20,103.50,103.75 Buyers 101.90,101.60,101.50,101.20,101.00,100.85,100.60,100.50

Schaeuble: Reforms needed to to make Europe competitive Posted: 28 May 2013 01:28 AM PDT The Germans have hit Paris with German labor minister Ursula Von der Leyen and Wolfgang Schaeuble both speaking. Von der Leyen says euro governments must break a vicious circle in which companies can’t hire worker because they can’t get affordable funding. Governments must work on a Europe for the future so thatthe young generation has a chance Schaeuble Mustn’t set wrong incentives with aid policies Can work pragmatically under current rules Need more success now against youth unemployment

ECB’s Noyer says France must push on with labour reforms Posted: 28 May 2013 01:18 AM PDT says French welfare deficit is unsustainable at present spending should be tackled no room for more taxes in budget consolidation efforts.

AUDUSD continues to make gains Posted: 28 May 2013 01:15 AM PDT Just posted 0.9680 after trading below 0.9600 in Asia. Sell interest seen here, 0.9700 and 0.9730. currently 0.9674 The pair is being supported by good buying interest in AUDJPY which has just failed to breach 99.00 after 97.25 lows.. currently 98.87

USDJPY still heading higher but sellers seen Posted: 28 May 2013 01:04 AM PDT High post now 102.30 EURJPY up to 132.00 but running into good sell interest here with further interest at 132.20 and 132.50

Coming up: “Europe-Next Steps” conference in Paris Posted: 28 May 2013 12:59 AM PDT Starting at the top of the hour we can expect a bit of rhetoric from , amongst others, Mssrs. Schauble, Moscovici and Hollande

UK’s Osborne announces latest round of spending cuts Posted: 28 May 2013 12:50 AM PDT George Osborne has announced that he has reached agreement with seven govt departments on savings to be made in 2015. The UK chancellor said he had found 20% of the £11.5bn he wants to cut spending by in the year from April 2015. Justice, energy and communities are among the departments agreeing to “significant savings”, he said, adding that health, schools and foreign aid would be protected from cuts. Mr Osborne is expected to announce the departments in question on a visit to north-west England later today , but the financial details will be held back until the annual spending review  presented to parliament in June. With a general election likely in May 2015, there’s no guarantee of course that any of this will come to fruition. The BBC carries more on the story here

European equities open firmer Posted: 28 May 2013 12:35 AM PDT FTSE +0.8% DEX +0.6% CAC40 +0.3% IBEX +0.5% FTMIB +0.7%

Swiss non-farm payrolls Q1: +4.152 mln vs +4.116 mln prev Posted: 28 May 2013 12:21 AM PDT

EURUSD orders Posted: 28 May 2013 12:18 AM PDT We’ve just seen a dip back down to 1.2900 from 1.2925 but the pair seems to be finding some decent cross-buying interest, particularly vs swiss and yen.  currently 1.2909 Sellers 1.2935,1.2950,1.2965,1.2985,1.3000,1.3030,1.3050 Buyers 1.2885,1.2860,1.2850,1.2830,1.2820,1.2800

Trading Ideas 28 May Posted: 28 May 2013 12:00 AM PDT As Europe grinds its way into a quiet start what do you think that today/this week holds in store? Let’s be having your ideas/thoughts here. Reasons welcome as always.

French consumer confidence may: 79 vs 85 exp Posted: 27 May 2013 11:47 PM PDT 84 prev Weaker number but EURUSD little changed at 1.2923

Nikkei closes up 1.2% at 14,311.98 Posted: 27 May 2013 11:05 PM PDT +169.33 points closes off the highs of 14,399.72 USDJPY quiet again at 101.95 after the afternoon session surge.

German import prices april: m/m -1.4% vs -0.5% exp Posted: 27 May 2013 11:03 PM PDT -0.1% prev y/y -3.2% vs -2.3% exp   -2.3% prev export prices m/m -0.2%  y/y-0.4% Lower than expected but EURUSD unmoved at 1.2921

Swiss trade balance april: CHF +1.728 bln vs +1.893 bln prev Posted: 27 May 2013 11:02 PM PDT

US warns the UK over loss of trade deal if they exit EU Posted: 27 May 2013 10:35 PM PDT Yesterday  members of Obama’s administration had a chiling message for the UK following recent speculation over a possible exit from the EU. They warned that the UK stands to lose out on multi-billion US/EU trade deal and that it was highly unlikely that a  separate deal would be made with the UK. The comments re-iterate American concerns, particulalry with formal negotiations soon to be begin on the TTIP ( Transatlantic Trade & Investment Partnership) which PM Cameron has said could bring GBP10 bln to the UK alone. Said a senior official: Having Britain in the EU … is going to strengthen the possibility that we succeed in a very difficult negotiation, as it involves so many different interests and having Britain as a key player and pushing for this will be important. We have expressed our views of Britain’s role in the EU and they haven’t changed. TTIP negotiations underscore why we think it’s important that it continues. Not good for the UK to be upsetting it’s “special” friend in these uncertain times. The Guardian runs the story.

BOJ’s Miyao says it’s vital to keep long and short-term interest rates on a stable path Posted: 27 May 2013 09:43 PM PDT BOJ board member on the wires it’s BOJ policy to keep interest rates on downward path even if there is upward pressure from recovery expectations BOJ will continue to pursue flexbile market operations recent rise in US interest rates and Japanese stock prices my have contributed to rise in JGB yields BOJ is firmly committed to QE as long as needed to achieve 2% inflation target USDJPY higher at 101.96 still premature to design smooth exit strategy that makets can anticipate BOJ has framework of flexible inflation target. It won’t guide polict rigidly to achieve target at any cost still see more downside risks from overseas economies Japan must constantly pursue structural and regualtory reforms to reduce risk of rise interest rates CPI growth likely be around 1% later this year/next year, wages seen rising around Spring 2014 USDJPY up to 102.02 on the comments, suggesting QE in place for a while yet.

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